Total council tax arrears across Britain have reached a record £9.3 billion, according to new analysis published on 24 June 2026 by Debt Justice, a debt campaign organisation.
The figures draw on data from the Ministry of Housing, Communities and Local Government for England, as well as recent releases from the Scottish and Welsh governments. Debt Justice's analysis shows that arrears rose by nearly £1 billion in the past financial year alone, a 12% increase on the previous year, and have climbed by 65% over the last five years.
How Arrears Break Down Across the Nations
According to Debt Justice's analysis, council tax arrears in England now stand at £7.4 billion, while cumulative arrears in Scotland and Wales have reached £1.6 billion and £0.32 billion respectively.
Wales recorded the sharpest rise over the five-year period, with arrears more than doubling, up 103% from £157 million in 2020-21. England and Scotland saw increases of 67% and 52% respectively over the same period.
Struggling with debt?
UK Debt Team can connect you with a regulated debt help partner who can talk through your options. No obligation, no charge to talk.
Bills Rising Faster Than Inflation
Debt Justice's analysis also highlights that council tax rates in England and Wales have increased at above-inflation rates. For the current financial year, the average Band D property pays £2,392 in England and £2,283 in Wales, increases of 56% and 66% respectively since 2016-17.
CPI inflation stood at 42% over the same period, according to the analysis, meaning householders are paying considerably more in real terms than they would be had bills risen in line with inflation. Scotland, by contrast, increased council tax roughly in line with inflation, though the analysis notes significant rises in recent years there too.
Collection Rates Falling
Collection rates remain above 95% across all three nations, but Debt Justice's analysis shows a marked decline over the past decade. Scotland recorded the largest fall, with collection rates dropping by 2.5 percentage points between 2015/16 and 2025/26. England and Wales saw drops of 1.5 and 1.9 percentage points respectively over a similar period.
Bailiff Referrals on the Rise
Council tax debt is described by Debt Justice as the biggest single debt collected by enforcement agents, or bailiffs. According to the analysis, referrals to bailiffs for council tax have increased by 30% in the last two years.
Toby Murray, Policy and Campaigns Manager at Debt Justice, said: "Successive governments have buried their heads in the sand over a crisis in council tax, but record levels of arrears means they can no longer ignore it. People aren't avoiding council tax, they simply can't afford it."
Jo Barker-Marsh, a member of the Debt Justice Greater Manchester Organising Group, said: "When we're talking about billions in arrears, we have to question whether council tax is a fair or appropriate tax. No amount of bailiffs, no amount of court dates is going to make people pay money they don't have."
Government Reforms Under Way
Debt Justice notes that both the Welsh and UK governments have announced changes to council tax debt collection, including altering the timescales before a court order can be requested and placing caps on certain fees. The organisation has called on all governments to go further, including ending the use of bailiffs and Sheriff Officers for council tax debt entirely.
Free, impartial debt advice is available from StepChange, MoneyHelper and Citizens Advice.